Ethiopia: Money laundering bill breaches confidentiality law
The newly proposed money laundering law requires what it calls “accountable persons” to identify customers and furnish when requested by the relevant authorities information on customers required for investigation or prosecution of crimes involving money laundering or financing of terrorism.
The bill tabled for discussion in parliament on Tuesday says that any confidentiality law which has been at work will not be respected under the new law.
Article 6 of the bill says, “No obligation of confidentiality imposed by other laws shall affect any obligation under this proclamation to report or furnish information.”
The “accountable persons” with obligation to furnish information about their customers include auditors, lawyers licensed accountants, NGOs, money transfer agents, foreign exchange bureaus, any financial institution, revenue and customs authority, including any religious institution.
According to Article 5 of the bill, any document or a certified copy of the document or a certified printout of any electronic record could be admissible as evidence in court proceedings.
The law gives immunity from liability to the accountable person for breach of any restriction on disclosure of information imposed by agreement or legislative provision should that person furnish the information to authorities in matters related to money laundering.
The criminal code, in Article 399, obliges professionals to keep information on their customers confidential. But this may no longer work should the money laundering law be enacted.
The law also stipulates that any person who is in control of a “property disproportionate to his present or past income is subject to punishment including imprisonment of 3-5 years if he fails to give satisfactory explanation to the court as to how he came to acquire it.
Not only is the person with disproportionate income be accountable but also his close relatives who are presumed to have acquired his property could be assumed to be under the control of the accused unless they present evidence to the contrary.
A new Financial Intelligence Center will be established by regulations to be issued by the Council of Ministers to investigate matters of money laundering.
The center will be empowered to amend the list of accountable persons stipulated in the proposed proclamation.
- By Bruck Shewareged | Ethiopian Reporter